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Smithfield Announces Closing of $900 Million Senior Notes Offering

05 August 2013

US - As part of the financing for the proposed acquisition of Smithfield Foods, Sun Merger Sub, Inc., a Virginia corporation has announced the closing of its previously announced offering of senior notes.

The notes were issued in one series of 5.250 per cent senior notes due 2018 in an aggregate principal amount of $500,000,000 and one series of 5.875 per cent senior notes due 2021 in an aggregate principal amount of $400,000,000.

Merger Sub is an indirect wholly-owned subsidiary of Shuanghui International Holdings Limited.

The proceeds of the offering were deposited into an escrow account.

Upon release from escrow, the company and Merger Sub expect that the net proceeds of the offering will be used to partially fund the acquisition, at which time, Merger Sub will merge with and into the company, with the company continuing as the surviving corporation as an indirect wholly-owned subsidiary of the parent company, Shuanghui, and assuming all of Merger Sub's obligations by operation of law.

The notes were offered and sold to qualified institutional buyers in the United States under Rule 144A and outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended.

The notes will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

TheMeatSite News Desk

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